Start a small local scrap yard

You pay sellers such as householders, tradespeople and other collectors. Metal recyclers and smelters pay you for sorted loads.

You buy by weight and sell at a higher price once metal is sorted, cleaned and built up into bulk loads.

• Identifying and grading metals
• Managing a safe working site
• Bookkeeping and record keeping
• Negotiating prices

• A scrap metal site licence from the council is generally needed in England and Wales, check the rules where you are
• An environmental permit or registered exemption may be needed, plus planning permission for the site
• Rules on payment methods, ID checks and record keeping for sellers
• Public liability and employer's liability insurance once you hire, plus fire and storage risks
• Metal prices rise and fall, so stock can lose value while you hold it
• Strict health and safety duties on a site with heavy machinery

Startup costs are typically around £12,000 to £60,000, depending on the site, equipment and stock you buy. These are estimates, so build your own budget, including licence, permit and insurance costs, before committing.

Things to check: a scrap metal site licence from the council is generally needed in England and Wales, so check the rules where you are. Also check whether an environmental permit or registered exemption and planning permission are needed, plus rules on payment, ID checks and record keeping.

Monthly revenue is typically around £5,000 to £25,000, depending on volumes and metal prices. This is revenue, not profit, and metal prices rise and fall, so stock can lose value while you hold it.